Democrats Unveil Higher
Ed. Reauthorization Plan

House Democrats have made their first major thrust in the battle
over reauthorization of the Higher Education Act by unveiling a plan
that emphasizes college affordability and tries to distinguish their
agenda from that of the Republican majority.

A measure proposed by Rep. George Miller of California, the ranking
Democrat on the House Education and the Workforce Committee, would
increase postsecondary students' ability to consolidate loans and
reduce their fees on federal financial aid.

That proposal, called the College Opportunity for All Act, would
also raise the maximum Pell Grant award for low-income borrowers to
$11,600 a year by 2011. The neediest students received top awards of
$4,050 in fiscal 2003, an amount that student-aid advocates say has not
kept pace with college costs.

A few pieces of Rep. Miller's plan, announced on Sept. 25, closely
mirror some GOP proposals. Yet the California Democrat also drew a
distinction between his party's objectives and those floated so far by
House Republicans, who have vowed to do more to compel the nations'
colleges and universities to control fast-rising tuition prices.

Republican proposals would lead to "even more tuition increases for
students, and a weakening of our higher education system," Rep. Miller
said in a statement. "We have to work with the states, who are forcing
tuition increases because of education cutbacks, to craft a solution
that brings tuition costs down."

That criticism was an apparent allusion to a proposal issued earlier
this year by Rep. Howard P. "Buck" McKeon, R-Calif., that would
penalize colleges that raised tuition by more than 2½ times the
rate of inflation. Colleges exceeding that failed to reduce those hikes
within a year could face the loss of their eligibility for federal
financial assistance.

That GOP plan has not yet been formally introduced, but it seems to
reflect the frustration voiced by several Republicans during
reauthorization hearings earlier this year that postsecondary
institutions were doing too little to control prices or turn out
qualified graduates in teaching and other professions, despite
receiving billions of dollars a year in federal aid.

Rep. Miller, however, suggested that overly strict price controls
could hurt students if colleges and universities, many of which are
already reeling from state budget cuts, were punished financially.

One change proposed by Rep. Miller would repeal a federal law that
bars students who borrow from a single lender from refinancing their
college loans through other companies. Known as the "single-lender
rule," the provision prevents students from seeking lower-cost loans,
consumer advocates say.

Student Savings

A second provision in the Miller bill would eliminate origination
fees when student borrowers take out their loans. Those fees, which are
up to 3 percent of the amount borrowed, can cost a student with $17,000
in federal student debt about $500.

Even a few hundred dollars worth of savings would be significant for
many students, said Chris Simmons, the assistant director of government
relations for the American Council on Education.

"We'd rather you had that extra $500 for expenses," said Mr.
Simmons, whose Washington research and policy organization represents
1,800 colleges and universities nationwide, and supports the
change.

Rep. Miller's legislation would also establish "Centers of
Excellence at Minority Serving Institutions," creating competitive
grants for qualified minority colleges and universities seeking to
improve teacher quality and preparation. Another provision would direct
the Department of Education to launch a pilot program to award Pell
Grants year round—with amounts above the current maximum of
$4,050—for students trying to finish school ahead of
schedule.

So far, House lawmakers have taken the lead on higher education
reauthorization in Congress, with the Senate not yet having held any
hearings on the topic. Federal lawmakers are reauthorizing the higher
education act, which expires next year, for the first time since
1998.

One proposal that emerged from the GOP side earlier this year is
aimed at improving teacher quality. A bill sponsored by Rep. Phil
Gingrey, R-Ga., would set stricter requirements on states and
teacher-preparation programs for reporting their graduates' passing
rates on teacher-certification tests. The measure would also tie
federal grant money to states' showing how their teaching programs
would bring more minority candidates to teaching. ("GOP Bill Aims to Produce
Better-Qualified Teachers," June 4, 2003.)

Alexa Marrero, a GOP spokeswoman for the House education committee,
said her party shared the Democrats' commitment to making college more
affordable for students from low- and middle-income families. She noted
that Republicans, like Democrats, were likely to support repealing the
single-lender rule.

But she faulted the Democrats' other plans, contending that they
were likely to heap new costs of "tens of billions of dollars, at
least" on taxpayers, or force cuts to other federal programs, if
enacted.

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